U.S. equities fell for the fourth straight day as growth fears and geopolitical risks weigh on market sentiment. The Dow Jones Industrial Average lost 0.32% to close at 29202.88. The S&P 500 shed 0.75% to close at 3612.39. The tech-heavy Nasdaq Composite dropped 1.04% to close at 100542.1.
Washington’s decision to further restrict China’s access to U.S. technology added sins of slowing chip demand worldwide. Market participants remain cautious ahead of the FOMC meeting minutes and CPI data, scheduled, respectively, to be released during the second half of the U.S. trading session on Wednesday and the U.S. trading session on Thursday.
The benchmark U.S. 10-year treasury yield has soared past 3.9% and was last seen trading at 3.955%.
The upcoming earnings season has been tainted by the relentless rate hikes by the Fed. JPMorgan Chase and Citigroup are among the big banks that will unveil earnings later this week. While economic data releases, so far this year, have brought great volatility to markets, the upcoming earnings season could be another bullet that will drag equities even lower.
Main Pairs Movement
The Dollar Index rose 0.38% throughout yesterday’s trading. Dollar demand resumed as bonds sold off and short-term interest rates soared. Trading at 113.17, the Dollar Index still has room above ahead of the key inflation data release on Thursday.
EURUSD retreated 0.43% throughout yesterday’s trading. The higher demand for the Dollar continues to weigh on the shared currency as market participants brace for another round of tightening by the Fed.
Cable lost 0.34% throughout yesterday’s trading. The British Pound fared worse against the Dollar as market sentiment turns risk off. Market participants will now turn their attention to the British average earnings index, scheduled to be released during today’s European trading session.
Gold slumped 1.5% against the Dollar as market participants for the Dollar outpaced Gold demand. As market participants prepare for another round of Fed tightening, Gold continues to stay on the backfoot as yield expectations rise.
|Currency||Data||Time (GMT + 8)||Forecast|
|GBP||Average Earnings Index +Bonus(Aug)||14:00||5.9%|
|GBP||Claimant Count Change (Sep)||14:00||4.2K|